Compensation of Employees (per hour)
Encyclopedia
The compensation of employees per hour is a measure for the financial well-being of a country's inhabitants. A similar measure is the GDP per capita. However, gross domestic product
(GDP) (on the income side) = compensation of employees + gross operating surplus
/mixed income + taxes on production - subsidies. This way, various components increase the GDP that are not directly contributing to the well-being of citizens. In particular, the gross operating surplus consists of corporate profits, which is money that companies save, reinvest, or pay to their shareholders in the form of dividends (who may be located outside the country). Even in the case of reinvestment, much of the money moves offshore
, especially with larger multi-national companies. In order to measure the part of the income generated by the domestic economy that is actually earned by the employees, it is better to break down the GDP to its components and consider only wages and salaries
.
(PPP) in the respective countries, which includes wages and salaries as well as employers social contributions. The figures are calculated from data published by the OECD. Note that some OECD countries are not listed, like Japan and the UK.
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
(GDP) (on the income side) = compensation of employees + gross operating surplus
Gross operating surplus
In the national accounts, is the portion of income derived from production by incorporated enterprises that is earned by the capital factor. It is calculated as a balancing item in the of the national accounts....
/mixed income + taxes on production - subsidies. This way, various components increase the GDP that are not directly contributing to the well-being of citizens. In particular, the gross operating surplus consists of corporate profits, which is money that companies save, reinvest, or pay to their shareholders in the form of dividends (who may be located outside the country). Even in the case of reinvestment, much of the money moves offshore
Offshore investment
Offshore investment is the keeping of money in a jurisdiction other than one's country of residence. Offshore jurisdictions are a commonly accepted solution to reducing tax burdens levied in most countries to both large and small scale investors alike...
, especially with larger multi-national companies. In order to measure the part of the income generated by the domestic economy that is actually earned by the employees, it is better to break down the GDP to its components and consider only wages and salaries
Wages and Salaries
In the national accounts, in accordance with the System of National Accounts, wages and salaries include the values of any social contributions, income taxes , etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons and paid...
.
Average compensation per hour
The following table lists the average compensation of employees per hour in purchasing power parityPurchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
(PPP) in the respective countries, which includes wages and salaries as well as employers social contributions. The figures are calculated from data published by the OECD. Note that some OECD countries are not listed, like Japan and the UK.
| Rank | Country | 2007 $ PPP |
|---|---|---|
| 1 |  United States |
$33.0 |
| 2 |  Netherlands |
$31.5 |
| 3 |  Norway |
$31.1 |
| 4 |  Early Modern France |
$30.4 |
| 5 |  Austria |
$28.0 |
| 6 |  Germany |
$27.8 |
| 7 |  Sweden |
$26.2 |
| 8 |  Denmark |
$24.8 |
| 9 |  Canada |
$23.5 |
| 10 |  Finland |
$22.6 |
| 11 |  Republic of Ireland |
$22.5 |
| 12 |  Italy |
$22.5 |
| 13 |  Poland |
$22.1 |
| 14 |  Spain |
$21.9 |
| 15 |  Cyprus |
$17.7 |
See also
- List of countries by average wages
- List of countries by monthly average wage
- List of sovereign states in Europe by net average wage
- International ranking of household income
- List of countries by GDP (PPP) per capita
- OECD
- Wages and salariesWages and SalariesIn the national accounts, in accordance with the System of National Accounts, wages and salaries include the values of any social contributions, income taxes , etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons and paid...